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It seems that they are still able to demand a decent chunk of change for these places.
Ultra low unemployment and a booming economy makes just about every area demanding a decent chunk of change. Pearl City will be more desireable for a person working downtown or Waikiki than Kapolei or Ewa Beach simply because it is closer from a commute perspective - probably 30 minutes each direction
Pearl City will be more desireable for a person working downtown or Waikiki than Kapolei or Ewa Beach simply because it is closer from a commute perspective - probably 30 minutes each direction
30 minutes each direction in little to no traffic. Morning rush hour is typically a 40-50 minute commute. Afternoon about 45 mins to an hour.
I also don't get why people say Hawaii is so expensive, NYC is definitely more expensive, I wonder who is writing these statistics?
People say Hawaii is expensive because 1)compensation imbalanced with the cost of living and 2) the same reason they say NYC is expensive...you know where I live you can rent a three bedroom house on an acre of land for about $400/month (utilities included)? I can walk across the road to my neighbors farm and get a 5 gallon bucket of milk for $1 and a barrel of sweet corn for $3. So to someone who lives in my area, Hawaii (and NYC) seem quite expensive. Most areas of America are much much less expensive to live in than Hawaii and NYC.
People say Hawaii is expensive because 1)compensation imbalanced with the cost of living and 2) the same reason they say NYC is expensive...you know where I live you can rent a three bedroom house on an acre of land for about $400/month (utilities included)? I can walk across the road to my neighbors farm and get a 5 gallon bucket of milk for $1 and a barrel of sweet corn for $3. So to someone who lives in my area, Hawaii (and NYC) seem quite expensive. Most areas of America are much much less expensive to live in than Hawaii and NYC.
But I bet in the winter time you don't go snorkeling or sleep in the hammock out on the lanai. I bet you can't pick pineapples and mangos and papayas in your yard. I bet you can't smell the lovely fragrance of plumeria when you're sitting on the lanai drinking your morning coffee.
But I bet in the winter time you don't go snorkeling or sleep in the hammock out on the lanai. I bet you can't pick pineapples and mangos and papayas in your yard. I bet you can't smell the lovely fragrance of plumeria when you're sitting on the lanai drinking your morning coffee.
That's why Hawaii is expensive to live in!!!
I reread my post and realize how it could come across as condescending, I apologize. I'm originally from Kauai and am moving back in August. I wasn't trying to be negative about Hawaii, it seemed to me that the OP was genuinely confused about why Hawaii is seen as expensive. Definitely can't do any of that in Wisconsin, for sure, but I have done that on Ometepe Island in Nicaragua for a fraction of the cost of Hawaii. If that's what I was after, I'd move there.
Also, in the winter you can't snowmobile in Hawaii Even paradise has it's drawbacks.
People say Hawaii is expensive because 1)compensation imbalanced with the cost of living and 2) the same reason they say NYC is expensive...you know where I live you can rent a three bedroom house on an acre of land for about $400/month (utilities included)? I can walk across the road to my neighbors farm and get a 5 gallon bucket of milk for $1 and a barrel of sweet corn for $3. So to someone who lives in my area, Hawaii (and NYC) seem quite expensive. Most areas of America are much much less expensive to live in than Hawaii and NYC.
I'm not saying you're fabricating numbers here... but why on earth would anyone buy a 3 bdrm home on one acre of land if they can rent one for $400 and let the landlord pay the mortgage, taxes, utilities, upkeep, etc. Wouldn't one acre lots with 3 bdrm houses in that area basically be FREE?
$400/mo would not even cover property taxes and the long term maintenance costs of a typical 3bdrm house here on Oahu. And our 3 bdrm homes are tiny compared to our mainland counterparts (smaller homes require less maintenance).
I do hear stories like this all the time... when people in the mainland are paying ridiculously low rents for homes where the upkeep needs alone far exceed the rents received. Are the landlords in these areas just sucking wind? Because I can't see these types of properties being exchanged for any amount of money as they generate absolutely zero real cash flow. I understand completely that rents could be low because the home is far from stores, shopping, healthcare, schools, etc... but I hear people paying rents where the rent doesn't even cover the basic maintenance needs of the structure and taxes.
I'm not saying you're fabricating numbers here... but why on earth would anyone buy a 3 bdrm home on one acre of land if they can rent one for $400 and let the landlord pay the mortgage, taxes, utilities, upkeep, etc. Wouldn't one acre lots with 3 bdrm houses in that area basically be FREE?
I suppose because land and houses (and basically anything) don't cost much of anything here either. People can add equity and have the freedom to do as they wish to their property. On the cost of living index, with 100 being the average in the USA, Wausau Wisconsin (I live outside of it, so I'm a little cheaper still) sits at 48 for housing, meaning on average housing in Wausau is less than half the cost of the average housing unit in the USA. Comparatively, Honolulu is at 338 and NYC is 275.
So really, almost everyone owns property. That same 3 bedroom house will probably cost $65,000. Apartments don't really exist here, and those who are renting houses are almost always between ages 18-24. Wages are lower as well, with average income at about $33,000 annual gross (according to Wikipedia). Makes travelling anywhere else in the country tough.
I suppose because land and houses (and basically anything) don't cost much of anything here either. People can add equity and have the freedom to do as they wish to their property. On the cost of living index, with 100 being the average in the USA, Wausau Wisconsin (I live outside of it, so I'm a little cheaper still) sits at 48 for housing, meaning on average housing in Wausau is less than half the cost of the average housing unit in the USA. Comparatively, Honolulu is at 338 and NYC is 275.
So really, almost everyone owns property. That same 3 bedroom house will probably cost $65,000. Apartments don't really exist here, and those who are renting houses are almost always between ages 18-24. Wages are lower as well, with average income at about $33,000 annual gross (according to Wikipedia). Makes travelling anywhere else in the country tough.
So I'm assuming anyone intelligent does not buy homes in Wausau for investment purposes? It would be nuts to plunk down $65K, pay for property taxes, property insurance, property upkeep and maintenance and utilities just to take home $400/mo. You would be cash flow negative even before you service a penny of mortgage debt.
How old and in what condition is a typical home in your area for $65K? What really boggles my mind is how a 1,500 SF home in the mainland can cost $65K. I get that land can be free (there is a lot of free or almost free land to be had in the mainland US) but construction costs (permitting fees, architect/engineering/etc) in Wausau are not 80% less than it is here. To build a 1,500 SF home (legally) in your low cost area would still cost at least $90/SF or $135K. How can properties sell with land for less than half the replacement cost of the home on the property?
I understand that there are some very depressed, high crime, high poverty areas where homes can sell for far less than what the construction related replacement cost would be (Detroit would be an example). But I always assumed this was only in areas where population flight was remarkably high.
I understand the desire to be able to do what you wish with your property (as an owner vs renter) but it's really hard to argue the financial benefits of homeownership when it costs far more to build, maintain and/or rebuild a home than what one could actually sell it for. As someone deeply in the construction industry, it seems crazy how much structure you can get in the mainland for such little cost.
Yeah, I'd assume that Wausau has a higher rate of renters, it's a bigger city so there are certainly apartments there. Wausau is actually doing quite well economically, but the surrounding rural areas aren't as good as the younger generation leaves to go to college and never comes back because, well, it's all farms. Most houses are farm houses from the 30s-60s (I'm living in a house that was built in 1925) or trailers. That age outweighs the newer houses, though there are certainly new houses around - but those aren't the ones being rented out. If they are, those will cost much more. You are correct, newer houses here cost in the 100k range and up to build, but they typically don't go up for sale and if they do, they sit for awhile because people take the older home for half the price. I'm sure sometimes it doesn't work out when they need to do extra maintenance and updating.
I guess I'm not 100% of all the reasons, I'm young and have never owned a home, so I'll admit I'm not really educated on the finances of home ownership vs renting.
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Even paradise has it's drawbacks.
